Berkshire's stock seeing a normal drawdown but still in an uptrend, says Carter Worth
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20 hours ago
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Warren Buffett Has $187 Billion Invested in Just 5 Stocks. Here's the Best of the Bunch.
Key Points Buffett's top positions in Berkshire Hathaway's portfolio include Apple, American Express, and Bank of America. Which of his top five stocks is the best pick depends on your investing style. The best overall stock, though, could be the one to which Buffett has given the highest praise. 10 stocks we like better than Apple › What's Warren Buffett's biggest holding in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio? That's easy: It's U.S. Treasury bills. As of the end of the first quarter, Berkshire had a whopping $305.5 billion in Treasuries. However, Buffett has over $1 trillion of Berkshire's portfolio invested in other publicly traded companies. Roughly $187 billion of that total is spread across only five stocks. Buffett's top five Apple (NASDAQ: AAPL) has ranked as the largest holding in Berkshire's portfolio for years. That's still the case despite Buffett significantly paring the conglomerate's stake in Apple. The iPhone maker accounts for 21.8% of Berkshire's total portfolio, with a value of around $64.1 billion. Buffett has been a longtime fan of American Express (NYSE: AXP). He still is, with the financial services giant comprising 15.9% of Berkshire's portfolio. This stake is currently worth roughly $46.7 billion. Although the legendary investor used to love bank stocks, his enamor has faded in recent years. However, his affection hasn't completely dwindled. Bank of America (NYSE: BAC) remains Berkshire's third-largest holding. The conglomerate's $30.6 billion stake in the big bank makes up 10.4% of its portfolio. What's Buffett's longest-held position? Coca-Cola (NYSE: KO). Berkshire has owned the stock for 37 years. Its 400 million shares of the huge food and beverage company are worth $27.6 billion today. Chevron (NYSE: CVX) is the last member of Buffett's top five. The major oil and gas producer comprises 6.3% of Berkshire's portfolio and is valued at nearly $18.5 billion. How these stocks compare While there are many ways we could compare these five top Buffett stocks, we'll focus on three of the most important: growth, valuation, and income. These areas not-so-coincidentally reflect three key investing styles. There's no contest in terms of share price growth over the last five years. American Express stock has more than tripled in value. Apple comes in a distant second, with a gain of around 130%. Interestingly, though, Chevron has delivered the highest revenue and earnings growth during the period, followed by AmEx. Determining which of these stocks has the best growth prospects going forward is more difficult. My best guess is that Apple will be able to grow faster than the others, even though that hasn't been the case in recent years. I suspect that artificial intelligence (AI) will be a key growth driver for Apple throughout the rest of this decade and beyond. A rumored launch of a folding iPhone could spark sales. I also look for the company to be a big winner in the smart glasses market. Bank of America is the hands-down winner when it comes to valuation. The stock's forward price-to-earnings ratio of 13.2 is well below the forward earnings multiples of Apple, American Express, Coca-Cola, and Chevron. Chevron will probably be the most appealing to investors seeking income. The oil and gas giant pays a lofty forward dividend yield of 4.39%. Chevron has also increased its dividend for 38 consecutive years. However, Coca-Cola is a solid runner-up, as a Dividend King with a yield of 2.95%. The best of the bunch Which of these stocks is the best? I think it depends on what kind of investor you are. Growth investors will probably like Apple the most. Value investors will likely gravitate toward Bank of America. Income investors will prefer Chevron or perhaps Coca-Cola. If I had to pick the best of the bunch overall, though, I'd have to go with Apple. I'm pretty sure Buffett would select Apple, too. After all, he has stated that it's "probably the best business I know in the world." And as we've seen, Apple remains Berkshire's largest holding. Granted, a cloud of uncertainty hovers over Apple. The company will eventually need to deliver a successor to the iPhone. The launches of its Apple Intelligence generative AI functionality and Vision Pro mixed-reality device left much to be desired. However, I'm cautiously optimistic that Apple will be able to justify Buffett's faith in its management and business over the next few years. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Keith Speights has positions in Apple, Berkshire Hathaway, and Chevron. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Chevron. The Motley Fool has a disclosure policy. Warren Buffett Has $187 Billion Invested in Just 5 Stocks. Here's the Best of the Bunch. was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
a day ago
- Yahoo
This Warren Buffett Stock Is Reportedly Contemplating a Huge Move
Key Points Kraft is reportedly looking at splitting up its grocery business. One entity may focus on sauces and spreads, while the other would include processed meats and cheeses. 10 stocks we like better than Kraft Heinz › Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) holds many prominent household names in its portfolio. But not all of them have been doing well in recent years. A great example of that is Kraft Heinz (NASDAQ: KHC). Despite being a big name in the food industry, it has been a brutal investment to hold -- its shares are down 17% over the past five years. The business isn't doing well, growth is stagnant, and investors are worried about the future as consumers pivot to healthier food choices. And the company is reportedly considering a breakup of its business. Here's why that could be a good thing for investors. Kraft Heinz to split its business? According to The Wall Street Journal, Kraft is looking at spinning off a sizable chunk of its business, which would be worth around $20 billion. Currently, the stock's total market cap is approximately $34 billion. While the details are still not exactly known as to which brands might be in which business, the company is reportedly looking to have one business that focuses on spreads and sauces, while the other is likely to include processed meats, cheeses, and other core products. It could take weeks before details are sorted out and there's also the possibility that a breakup doesn't end up happening. But with the stock and company performing so poorly in recent years, a shake-up could be in order. The company's sauces and spreads, for instance, which are staples in households around the world, may have better growth potential than a business that's focused on processed food, which has been associated with health risks. The company has not been going in the right direction Kraft's top line hasn't given investors much reason to be optimistic. While it's been relatively steady in recent years, at around $26 billion in annual revenue, that's not terribly exciting for growth investors, especially given that many of the company's brands are synonymous with less-than-healthy eating. Forward-looking investors know that this downward trend may persist in the future as consumers eat healthier. And while the stock offers a high dividend yield of 5.5% today, that may not be enough of a reason to own it, especially if the stock's losses more than offset the dividend income. Plus, the danger is that if the company's top and bottom lines decline in the future, the dividend may not prove to be sustainable. For both dividend and growth investors, there are plenty of concerns around Kraft these days, which explain why the food stock hasn't been doing well. Should you buy Kraft Heinz stock today? Kraft's stock looks cheap, trading at 13 times its trailing earnings. But with many question marks around its business, the safest option is to take a wait-and-see approach. A spinoff could open up a good opportunity for investors, by splitting off segments and brands that may have more potential to grow in the long run. However, until the full details come out about a spinoff and what brands each business may have, it would be difficult to assess just how attractive the opportunity might be. And you would still need to wait until after the spinoff takes place and then invest in the specific business you want, to ensure you aren't still having a position in the entire company as it stands today. For now, I'd hold off on buying Kraft's stock. It appears evident that a change in strategy may be inevitable, whether it's a breakup of the business or some other move, and you may be better off waiting before making any investment decision on Kraft. Should you invest $1,000 in Kraft Heinz right now? Before you buy stock in Kraft Heinz, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kraft Heinz wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy. This Warren Buffett Stock Is Reportedly Contemplating a Huge Move was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
1 Reason to Buy Visa (V)
Key Points Visa is a high-quality business whose shares rarely go on sale, but that might not discourage investors from owning the stock. The company's competitive position is supported by the presence of a powerful network effect. Stablecoins have an uphill battle to put a dent in Visa's business model. 10 stocks we like better than Visa › Visa (NYSE: V) is a dominant force in the financial services industry. It runs a leading payments platform that connects consumers, banks, and merchants across the globe. The business even finds itself in Warren Buffett-led Berkshire Hathaway's portfolio. This financial stock trades close to all-time highs, and a valid argument can be made that the current valuation isn't cheap. But this is an outstanding company that still deserves a closer look. Here's one reason investors should buy Visa. Visa's unassailable competitive position In fiscal 2024, Visa processed 233.8 billion transactions valued at a whopping $15.7 trillion. It currently has 4.8 billion active cards that are accepted at 150 million merchants around the world. That scale is unmatched, and it demonstrates just how formidable Visa's competitive position is, which is a key reason to scoop up shares. The business benefits from an extremely powerful network effect. As the number of merchants that accept Visa grows, it's more valuable to have a Visa card. The opposite is also true, with more cardholders creating more sales opportunities for merchants. The threat of stablecoins With the passing of the Genius Act, investors might start to worry about the threat that stablecoins pose to Visa's business model. As things stand today, there's no reason to be concerned. While merchants will test the waters in an effort to cut payment processing costs, the real question of whether or not consumers will make the jump. Favorable legislation passing doesn't necessarily mean there will be mass adoption of stablecoins. People love their credit cards and the perks and rewards they offer. And a company like Visa is so ingrained in our economy, with the network effect already mentioned, as well as its deep relationships with banks and other players in the financial services industry, that it's a monumental task to disrupt it. Visa should continue to dominate the payments landscape for the foreseeable future. Do the experts think Visa is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Visa make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Visa. The Motley Fool has a disclosure policy. 1 Reason to Buy Visa (V) was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
